Every year, the pace of business continues to accelerate, forcing enterprise sourcing teams to adapt to changes and shifts within global markets in order to stay competitive. Although workloads and responsibilities continue to increase, sourcing teams remain understaffed with little relief in sight. As a result, collaboration, early engagement, process linkage and automation have become valuable multipliers to help extend a sourcing team’s impact throughout the enterprise, even as it remains stretched to its limits.
In today’s competitive business climate, supply chain management professionals are constantly seeking out creative ways to reduce costs, assure and improve the quality of the final product and achieve a faster time to market. And the answer to all the above problems is one- Strategic Sourcing.
Strategic sourcing skills play an important role in the cost structure and competitiveness of small and large businesses. These skills involve analyzing high-volume purchases and developing long-term partnerships with a select group of suppliers that are capable of providing quality products and services at low costs. High-volume purchases are the best candidates for strategic sourcing because they are likely to have the greatest impact on lowering cost structures.
However, strategic sourcing is a mansion supported by 4 pillars- Spend analysis, sourcing, contract management supplier management. Automating and integrating these four areas creates a reinforced structure that serves global sourcing and procurement organizations significantly better than if they tried managing each process manually and in an ad-hoc manner.
To know more on how to tackle the pressures and challenges faced by sourcing teams today and also gain a deeper insight on how the 4 pillars of strategic sourcing can benefit your organization, read the latest report by Ardent Partners today.